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The New Health Report Reveals Perception Gaps Among Biopharma Stakeholders

The New Health Report from Quintiles highlights important gaps among bio pharma, managed care executives and patients

RESEARCH TRIANGLE PARK, N.C. – June 15, 2010 – A newly published report details the differences between bio pharma and other key stakeholders as they grapple with the best approach to drive innovation amid the pressures of declining R&D productivity, increasing development costs, diminishing returns on marketing and sales, and lower earnings.

The New Health Report was commissioned by Quintiles to gauge bio pharma executives’, managed care executives’ and patients’ opinions and to track progress in the New Health. “New Health” is how Quintiles describes the fast-morphing world of bio pharma, where companies are under relentless pressure to drive innovation and add value to drug development without sacrificing safety, ethics and stewardship.

“The results in The New Health Report reveal the challenges that the bio pharma industry faces to close the gaps that exist between them and the new constellation of stakeholders,” said Jay Norman, President of the Consulting group at Quintiles. “The results also point to the significant opportunity for bio pharma to take charge of its future through better alignment with payers, improved understanding of patients and the use of data and improved information exchange among all stakeholders to manage complexity and accelerate drug development.”

Key findings from Quintiles' The New Health Report include:

• What drives innovation?

Among biopharma executives, 72% see mergers and acquisitions as a likely future development of the industry, but only 15% feel large mergers will provide more opportunities for innovation. In contrast, 39% of managed care executives believe large mergers will lead to more innovation opportunities.

• Should biopharma share failed compounds?

Of biopharma executives, 88% believe it is important to partner with rival bio pharma companies to strengthen the pipeline of new therapies, yet less than half (44%) would be willing to share information about failed compounds. In contrast, 91% of managed care executives say that bio pharma should share information about failed compounds with competitors in order to bring therapies to market faster.

• Do patients have influence on drug development?

Almost one-third (32%) of bio pharma executives think patients will be very or extremely influential in the success or failure of new drug therapies over the next five years. In stark contrast, only 11% of patients feel they will be influential in which new prescription drugs are available over that same time period.

• What should biopharma do to accelerate products to market?

Among bio pharma executives, 73% report that they are currently working with partners to share financial risk and best practices. Managed care executives agree with this approach and add that pharma also should use data and decision models in new ways (79%).

“A reality of the New Health is that payers and patients are looking to bio pharma to drive innovation and to transform the drug development model,” Norman said. “One of the first steps is for bio pharma to work to close the gap in the perception of value. Bio pharma also must explore alternative alliances that leverage the capabilities of each partner to increase value and decrease risk.”

Additional findings from The New Health Report include:

• Tough Regulatory Environment – Nearly four in five (78%) bio pharma executives believe the more complex regulatory environment will have a negative impact on their ability to get new products to market quickly. However, nearly three in five (59%) managed care executives feel this dynamic will have a positive effect on the quality of products available.

• Therapeutic Focus – Bio pharma executives (41%), managed care executives (35%) and patients (45%) all agree that oncology should be the therapeutic area of greatest focus in the next five years. Among bio pharma executives, central nervous system (CNS) diseases ranked second at 14%.

• Impact of Generics – Generics are an issue of great concern among bio pharma companies. For bio pharma executives, 78% feel that a decline in investment in new therapies is likely if generics continue to gain market share, and almost half (46%) believe the worsening of public health is a likely outcome. Among managed care executives, 56% also believe a decline in new therapy investment is a likely outcome of increased generics use.

• China – A majority (85%) of bio pharma executives believe that China will significantly increase its capacity to produce generics in the next three to five years. However, only 38% of bio pharma think China will emerge as a center of drug innovation in that same time period.

About The New Health Report
The New Health Report is a national survey of bio pharmaceutical executives, managed care executives and members of the U.S. public. Richard Day Research of Evanston, Ill., conducted the survey on behalf of Quintiles and was responsible for all survey design, data analysis and data reporting. Data for this survey were collected in online interviews conducted between February 2 and March 22, 2010. Survey sample respondents included 144 bio pharmaceutical executives at the director level or above at large (annual revenues of more than $3 billion) and emerging (annual revenues of less than $100 million) companies, 129 managed care executives at the director level or above, and 1,048 U.S. adults ages 18+.
Access the complete results of the survey at:

About Quintiles
Quintiles is the only fully integrated bio pharmaceutical services company offering clinical, commercial, consulting and capital solutions worldwide. The Quintiles network of 20,000 engaged professionals in 60 countries around the globe works with an unwavering commitment to patients, safety and ethics. Quintiles helps bio pharmaceutical companies navigate risk and seize opportunities in an environment where change is constant. For more information, please visit


Greg Connors, Investor Relations
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Mari Mansfield, Media Relations
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Posted: June 2010